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Oil Records Longest Losing Streak in Last 3 Months

Industry: Oil&Gas Exploration & Production
Current: Other Industry Indicators

Oil fell more than 20% in the three months leading up to August 2022 as the Fed and other central banks raised interest rates, fueling fears of a slowdown or even a recession
As central banks, notably the Federal Reserve, tightened policy to combat high inflation, West Texas Intermediate fell to $89 per barrel, while Brent Crude oil futures were down at $96.53 a barrel
The ministers of the 23-member OPEC+ coalition will convene on September 5 2022 to discuss production policy after previously deciding to increase supply marginally

As concerns about demand increased, the dollar strengthened, and investors avoided risky assets such as commodities, and oil prices plummeted at the start of September 2022. Oil fell more than 20% in the three months leading up to August 2022 as the Fed and other central banks raised interest rates, fueling fears of a slowdown or even a recession. Since Russia’s invasion of Ukraine at the end of February, crude prices have risen steadily. The decrease erased all those gains, and Saudi Arabia signaled that the Organization of Petroleum Exporting Countries (OPEC) and its allies could reduce supplies.

US Crude Oil

Crude oil is one of the most in-demand commodities, with Brent Crude and West Texas Intermediate being the two most traded grades. Because crude oil serves as a benchmark for global economic activity, the price of oil reflects the market’s turbulence and liquidity.

As central banks, notably the Federal Reserve, tightened policy to combat high inflation, West Texas Intermediate fell to $89 per barrel in the three months leading up to August 2022, the longest losing streak since April 2020. In a separate incident, merchants continued to monitor the movements of ships via the Suez Canal after a tanker ran aground and was later refloated, disrupting commerce. At $96.53 a barrel, Brent Crude oil futures were down $2.78, or 2.8%.

Sichuan city in Chengdu in China, the top importer of oil globally, was to be shut down from the night of September 1, 2022, due to a spurt in COVID-19 cases. The ministers of the 23-member OPEC+ coalition will meet on September 5, 2022, to discuss production policy after previously deciding to increase supply marginally. The Joint Technical Committee of the group strengthened its forecast for the world oil markets for 2022 and 2023 ahead of the meeting next week.

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